Two housing firms have been urged to avert a crisis that could force hundreds of asylum seekers out of their homes.

G4S subcontractor Jomast’s contract to provide accommodation for asylum seekers in the North East is due to end on August 31.

But just a week away from that deadline no deal has yet been reached for new provider Mears to take over those properties.

That could mean that vulnerable families across the region are forced to leave their homes and possibly move into temporary accommodation.

Newcastle City Council, which has clashed with Jomast before in a fight over asylum seekers being made to share bedrooms with complete strangers, has urged the two parties to find a compromise.

A council spokesperson said: “We are aware there are ongoing discussions taking place between Jomast and Mears about the housing of asylum seekers in Newcastle.

"We are monitoring the situation and call on both parties to reach an agreement that minimises disruption to asylum seekers, their children and the wider community.”

Newcastle has the highest number of supported asylum seekers in the region, with 1,089 in 2018 according to Home Office figures.

A Jomast spokesman said that negotiations with Mears remain ongoing and that the firm was “not in a position to say any more at this stage”.

Middlesbrough Mayor Andy Preston also demanded urgent action earlier this month to avoid a disastrous transition for asylum seekers.

John Taylor, chief operating officer of Mears Housing Management, said: “Mears is committed to ensuring that all asylum seekers in Newcastle are housed in accommodation that is safe, habitable and fit for purpose, compliant with the Home Office AASC contract.

“Mears is negotiating with Jomast on how best to achieve this for service users in the properties they supply across the North East region.

“Mears is working closely with the Home Office to deliver the transition to the new contracts successfully. Mears is also in regular contact with all relevant local authorities in the North East to support the transition including Newcastle City Council.”

It was announced in January that Mears had won a 10-year Government contract worth more than £1bn to provide asylum seeker accommodation and support in Scotland, Northern Ireland, the North East, Yorkshire and the Humber.

Coun Joyce McCarty, deputy leader of Newcastle City Council, said earlier this year that Mears were “much more receptive” than Jomast around ending forced bedroom sharing.

In 2017, the local authority banned private housing firms from forcing asylum seekers to share bedrooms with complete strangers who may not even speak their language — but the local authority’s efforts were later deemed unlawful after being challenged by Jomast at a tribunal hearing.